Farfetch is continuing to experience a certain level of backlash following a last-minute rescue by South Korean firm Coupang, with the Neiman Marcus Group (NMG) now said to have scrapped its ongoing partnership with the luxury e-tailer.
According to Business of Fashion (BoF), NMG has put a halt to plans to use Farfetch’s e-commerce software for Bergdorf Goodman, which was initially preparing to integrate the technology for its online storefront and app. The company will additionally no longer be joining Farfetch’s marketplace.
The duo first established a relationship back in 2022, when Farfetch invested 200 million dollars into NMG, with the deal to integrate its e-commerce tech, Farfetch Platform Solutions, into the online experience of the group’s owned department store, Bergdorf Goodman.
As reported by BoF, Fartech will however maintain its position as a minority investor in NMG, where efforts to build on its own e-commerce technology are currently underway.
Last week, amid the finalisation of Coupang’s acquisition of Farfetch, backlash against the 500 million dollar deal came to light in the form of a group of disgruntled investors who had raised concerns over the apparent “distressed sale”.
It was a move the shareholders of Farfetch, which hold over 50 percent of the company’s 3.75 percent convertible senior notes, had labelled as “value destruction” following an “unexplained deterioration in the financial position” of the company.
As such, the group issued Farfetch with a winding up petition in the Cayman Islands, calling on the appointment of a liquidator and an investigation into the conduct of Farfetch founder José Neves.
This article was updated Feb 19, 18:30, with a statement from a Farfetch spokesperson stating: “We continue to partner closely with thousands of brands and boutiques around the world to provide an elevated online luxury experience for millions of customers.”